ESG Investing
3 mins
September 15, 2023

Adding Urban Renewal investments to your Wombat portfolio

Increasing population

According to United Nations figures, the global population could increase by 2 billion over the next 30 years, from 8 billion to almost 10 billion*. Urbanisation, that is people living in cities and towns, continues to increase..

Urban renewal and smart cities are now an essential part of making our environment more sustainable and efficient. As well as being necessary, these developments provide some interesting opportunities for investors.

What is Urban Renewal?

Many cities have already become overcrowded and inefficient due to the sheer number of people living in them. Infrastructure including public transport, as well as housing, energy, and office space simply don’t work as they ought to. 

Urban renewal is the process of drastically updating or replacing these systems to make cities more comfortable and environmentally sustainable. It’s the advanced technologies, renewable energy, and better materials, that are of interest to investors.

The promise of smart cities

Smart cities really just refers to technology that benefits both citizens and the environment. In Rotterdam, for example, the warmth from sewage water is re-routed under the streets and used to melt slippery ice in the winter.

Many cities now actively measure air quality in an attempt to combat pollution, while others have installed smart lighting, which can adjust its brightness automatically during times of inactivity.

The global smart cities technology market is set to reach an estimated $2.51 trillion in value by 2025**.

Investing in Urban Renewal on Wombat

Alphabet Inc. (NASDAQ: GOOGL) (Wombat Instant and Standard)

 Google's parent company, Alphabet, has invested significantly in smart city initiatives through its subsidiary, Sidewalk Labs. Sidewalk Labs focuses on developing technology-driven solutions for urban challenges, such as adaptive traffic management and sustainable infrastructure.

Honeywell International Inc. (NASDAQ: HON) (Wombat Instant)

Honeywell is a diversified technology and manufacturing company with a strong presence in the smart cities arena. The company provides solutions for energy management, smart buildings, and infrastructure development, contributing to sustainable urban transformation.

Adding these technologies to your portfolio now could be a smart investment.

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* Source 1
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